Cadence Property Group pays $15.5M for dev site in Hell’s Kitchen

The developer Cadence Property Group through the entity Cadence 51/52 Development LLC paid $15.5 million to David Schwartz, Elizabeth Osterhoudt, and Karen Brown through the entity David West 52 LLC for the parking lot (G6) and likely development site at 354 West 52nd Street in Hell’s Kitchen, Manhattan.
The deal closed on April 18, 2023 and was recorded on May 2, 2023. The property has zero square feet of built space and 57,190 square feet of additional air rights for a total buildable of 57,190 square feet according to a PincusCo analysis of city data. The sale price per buildable square foot is $270 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for David Schwartz, Elizabeth Osterhoudt, and Karen Brown was David Schwartz, Elizabeth Osterhoudt, and Karen Brown. The signatory for Cadence Property Group was Howard Glatzer.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Cadence Property Group had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller David Schwartz had not purchased any other properties and had not sold any properties over the same time period.

The property

The parcel has frontage of 75 feet and is 201 feet deep with a total lot size of 9,500 square feet. The lot is irregular. The zoning is R8 which allows for up to 6.02 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $2.5 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has not received any significant violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Hell’s Kitchen, The bulk, or 39 percent of the 40.6 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 18 percent of the space. In sales, Hell’s Kitchen has 3.4 times the average sales volume among other neighborhoods with $1.2 billion in sales volume in the last two years and is the 10th highest in Manhattan. For development, Hell’s Kitchen is the 10th most active neighborhood among other neighborhoods. It had 4 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of eight of the 35 commercial properties representing 77,560 square feet of the 267,285 square feet. The largest owner is Ts 351w51 Llc, followed by Ronald Cherney and then Michael Lagudis.
There are no active new building construction projects on this tax block.

The majority, or 61 percent of the 267,285 square feet of built space are walkup buildings, with elevator buildings next occupying 23 percent of the space.

The seller

The PincusCo database currently indicates that David Schwartz owned at least one commercial property with 130 residential units in New York City with 121,156 square feet and a city-determined market value of None. (Market value is typically about 50% of actual value.) The portfolio has $6.5 million in debt, borrowed from TD Bank. The portfolio consists of at least a single elevator property. It is located in Manhattan.

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